Bay Area Bank-owned Homes and Short-sale Homes for Sale by Paul LeJoy at Pacific Realty Partners

When The Price Is Right

I showed some properties yesterday. When we got to one of the properties in Newark, we saw a lot of cards on the kitchen countertop. The kitchen appeared to be newly rehabbed and showed well. The front yard was also in good shape. What made this 4 bedroom, 2 bathroom home was such a draw, in my opinion, appeared mostly to be the price. Whenever a single family residence of this caliber gets listed for under $400,000 in Newark or Fremont you can rest assured that it will receive an avalanche of traffic and a ton of offers. This particular property, attached herewith, was no exception. The REO (i.e. bank-owned) property has been on the market for only 11 days.

My client seemed to be interested in the property so I told her I’d find out more information regarding the apparent termite damage. I called the listing agent (LA) and left a message. I followed up with an email. I received an email from the LA soon after and not much to my surprise she said that they have received 24 offers on the property and the seller, in this case the bank, has made a decision to accept one of them.

The other day, I did a Broker Price Opinion (BPO) on a new listing I received from one of my lender accounts. I did my analysis based on a 1-mile radius, 6 months period. I came up with 14 sold listings, 13 of which were REOs.

To make a long story short, the real estate market may be suffering right now, but sales are reported to be up from last year, 75% of which are bank-owned properties. First-time home buyers and investors are seeing the value in these types of properties and are picking them up by the truckload because the price is right.

Posted - 11/24/2008

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